Are you seeking the best Point of Sale (POS) system to manage your retail store? Shopify POS is an excellent option that can streamline transactions, track inventory, and help you gain insights into customer behavior. This comprehensive review will explore how Shopify POS works, its features, and how it compares to other popular systems on the market.
Shopify is a leading ecommerce platform that provides a range of tools for retailers to sell products online and in-store. The platform offers a user-friendly website builder, payment processing, shipping, and marketing tools to help retailers manage and grow their businesses.
Whether you are a small boutique shop or a large department store chain, this review will help you decide if Shopify POS suits your business needs.
Overview of Shopify POS
Shopify POS is a point-of-sale system that helps businesses accept payments and manage their retail stores. Its purpose is to make it easier for business owners to manage their in-store operations, from accepting payments and tracking inventory levels to managing customer data and creating custom sales reports.
The system is powered by an intuitive, cloud-based app accessed from any device with an internet connection. This allows businesses to access their POS system anytime, anywhere, and make changes on the fly without updating software or hardware.
Features
Shopify POS offers a range of features that make retail store operations easier, including:
Accepting Payments Using All Major Credit Cards, Apple Pay, and Other Mobile Payment Methods
Shopify POS allows retailers to accept payments from all major credit cards, Apple Pay, and other mobile payment methods. This makes the checkout process seamless for customers and ensures that payments are securely processed.
Managing Inventory and Stock Levels
Shopify POS allows retailers to track inventory and stock levels in real-time. This makes it easier to manage store operations since you can quickly identify which products are in demand and adjust your ordering accordingly. The system also allows you to set minimum stock levels for each item, so you never run out of popular items.
Analyzing Customer Data
The Shopify POS system allows retailers to collect and analyze customer data, such as purchase history, preferences, and demographics. This helps businesses gain insights into their target market and can be used to tailor marketing campaigns to reach a more targeted audience.
Creating Custom Reports
Shopify POS allows business owners to generate custom reports that provide insights on sales, inventory levels, customer data, and other business metrics. These reports can help businesses make informed decisions about their operations and identify areas for improvement.
Creating Customer Profiles To Track Customer Purchases
Shopify POS enables businesses to make customer profiles and monitor customers’ purchase history and preferences. This helps retailers build better relationships with their customers and can be used to tailor promotional offers.
Integrating With Existing Software Such as Quickbooks or Xero Accounting Systems
Shopify POS is compatible with other software systems like QuickBooks and Xero accounting systems. This makes it easier to manage financial data and streamline operations. Integration with other systems allows businesses to sync customer data so customers’ purchase histories are kept up-to-date across multiple platforms.
Multichannel Sales Management
Shopify POS allows businesses to manage sales across multiple in-store, online, and mobile channels, thus making it easier for retailers to track orders and process payments. The system also integrates with Shopify’s other tools, such as the Shopify Payments app and the Shopify Shipping app.
Omnichannel Selling Features
Shopify POS also has omnichannel selling features, which enable retailers to offer a seamless shopping experience across multiple channels. Customers can buy online, pick up in-store, or switch between different media as they shop.
Cash Register Integration with Barcode Scanners, Receipt Printers, Cash Drawers, etc.
Shopify POS also integrates with cash registers, allowing businesses to scan barcodes quickly, print receipts, and open cash drawers. This makes the checkout process more efficient and ensures that transactions are securely processed.
Local Delivery, Curbside Pickup, and a Ship-to-Customer Option, With Shipping Rates Calculated Automatically at Checkout
Shopify POS allows businesses to offer local delivery, curbside pickup, and a ship-to-customer option. The system also automatically calculates checkout shipping rates so customers can choose the best option.
Other features include:
- Automatic tax calculations at checkout
- Discount codes and loyalty programs
- Inventory management tools
- Multiple staff accounts
- Supports multiple currencies and languages
- Customizable product catalogs
- Automated inventory management
- Ability to track returns and refunds
- Mobile POS support for tablets and smartphones
- Gift card processing capabilities
- Customer loyalty programs
- Built-in security features to protect customer data
How To Choose the Best Retail POS System
When comparing POS systems, it’s important to consider the features and pricing of each system. Below are some key considerations that businesses should take into account when choosing a POS system:
Features Range
A Point-of-Sale (POS) system can be utilized for numerous purposes – from gyms to cafes, art galleries, and shoe stores. While the most commonplace features provided tend to include sales processing, inventory management, accounting processes, employee and customer management as well as sales analytics, you may require more specialized features depending on your industry.
Take a detailed look at the features of each POS system you’re considering. Some systems offer more complex and comprehensive capabilities than others, so it pays to investigate which one best suits your needs before making a final decision.
Pricing
The cost of each system varies depending on the range of features offered and the number of users/locations supported. Having a budget before selecting a POS system is essential, as you don’t want to overspend on features you won’t use regularly. Pricing models can also vary, so consider if you wish to pay up-front or on a subscription basis.
Each POS system has unique features and pricing options, so comparing the range of features offered against the overall cost is essential.
Customer Support
Confirming that your chosen system is backed by excellent customer support is essential. Technical issues are bound to arise from time to time, so ensure your POS provider offers reliable customer service that can help you when needed.
Hardware Compatibility
Choosing the right point-of-sale system is critical, as it should be compatible with your hardware. Some POS tools require dedicated machines created explicitly for the software, while others can work on tablets or smartphones. Thus, checking the device compatibility of any system you’re considering is essential, as you don’t want to purchase additional hardware if not necessary.
Analytics
If you want your business to thrive, you must thoroughly understand where the company is heading. To do this, having access to relevant data and accurate analytics guarantees that you can make sound decisions quickly and efficiently.
With an array of reporting options at your disposal, delving deep into various aspects of your business allows for tailored information specific to what will help make it scale. Utilizing such software promises more success with less wasted time on activities deemed unhelpful in achieving growth.
Scalability
As your business expands, you will want the POS system to keep up with demand. Seek a POS system that offers scalability and can grow your business. Scalability is one of the critical features to consider when choosing a POS system, as it will allow you to quickly add additional users and locations as needed.
Integrations
Integrating with other software is a crucial aspect of any POS system. Look for one that allows you to integrate with existing inventory and accounting systems, as this will save time and effort to keep your books up-to-date. Integrating existing customer databases will also help you gain deeper insight into customer behavior and preferences.
For example, if your POS system integrates with your marketing software, you can track customer purchases and target promotions to your most loyal customers.
Shopify POS Plans and Pricing
Shopify offers two POS plans: Shopify POS Lite, which is accessible with all Shopify monthly plans except for Lite itself, and Shopify POS Pro, a more advanced plan. With both options, you would need a pre-existing Shopify ecommerce account; however, only Basic and above subscriptions will include an online store.
Regarding pricing, using the Shopify POS Lite plan won’t cost you any extra money in addition to your regular ecommerce fees. Opting for the Pro version includes an $89 monthly fee on top of that amount unless you buy a Shopify Pro ecommerce plan.
Shopify offers five pricing plans that range from a starter plan ($5 per month) to their most advanced option, Shopify Plus ($2,000 per month).
Let’s take a closer look at the pricing plans:
Shopify Starter Plan- $5/month
The Shopify Starter plan is the most basic version of the ecommerce platform. It is a pricing plan for merchants wanting to sell products on social media platforms. If you opt for the Shopify Starter plan, it will only cost you $5 per month, but unfortunately, there’s no ecommerce store included in this package.
On the less positive side, customers are subject to exorbitant credit card rates of 2.7% with every purchase made on your site and must use one of Shopify’s payment gateways. That being said, if you select this option, you can still benefit – registering an unlimited number of products and using multiple devices simultaneously are allowed. Additionally, if anything goes wrong or any help is needed, their customer support service is available 24/7. The Shopify POS doesn’t come with this plan.
Basic Shopify Plan – $25/month
The Basic Shopify plan is the perfect option for small businesses who want to take their store online and have access to more features than the Starter package offers. With this plan, you get a fully-featured ecommerce website, the ability to accept payments via any major credit card, and access to the Shopify POS. Users will be charged an additional 2.9% + 30¢ of the revenue from each online credit card transaction, 2.7% from each in-person credit card sale, and 2% of revenue from any payment provider other than Shopify.
In addition to this, customers can also benefit from features such as abandoned cart recovery, manual order creation, and discounts. Furthermore, they’ll be able to enjoy around-the-clock support.
Shopify – $65/month
The Shopify plan is perfect for those who want to take their online Shopify store to the next level. This plan offers more features than the Starter and Basic plans, such as creating up to five staff accounts, access to advanced report building and fraud analysis tools, third-party calculated shipping rates, and access to gift cards. With this package, you also get access to the Shopify POS system.
As with Shopify’s plans, customers will be charged an additional 2.9% + 30¢ of revenue from each online credit card transaction, 2.7% from each in-person credit card sale, and 2% of revenue from any payment provider other than Shopify.
All the benefits above, combined with 24/7 customer support, make Shopify an excellent choice for small businesses and entrepreneurs.
Shopify Advanced – $399/month
The Shopify Advanced plan is the perfect fit for businesses looking to scale their operations and requires more features than the Basic plan. This package includes everything from the Basic plan plus additional features such as advanced reporting, third-party calculated shipping rates, third-party calculated taxes, and customer accounts.
In addition, customers can also take advantage of features such as gift cards, professional reporting tools, and more robust analytics.
Shopify Plus – $2,000/month
The Shopify Plus plan is the most advanced package and comes with everything an online retailer needs to scale their business. This package offers unlimited staff accounts, advanced fraud analysis tools, access to the Shopify POS system, and automated taxes. It also includes integrated marketing tools, custom shipping rates, and other features that make it ideal for large businesses that need enterprise-level solutions. The POS Pro is also free with this plan.
Shopify POS Lite vs. POS Pro
Shopify POS Lite and POS Pro are two of the most popular options for businesses looking to upgrade their point-of-sale system. The pricing for Shopify POS Pro is an additional $89 on top of your regular ecommerce fees unless you upgrade to the Shopify Plus plan.
Each plan has unique features and advantages, so let’s closely examine them to determine the best fit for your business.
Shopify POS Lite
Shopify POS Lite is the starter version of Shopify POS and is included in all monthly plans, excluding the Lite plan. It’s the perfect choice for businesses just starting with their point-of-sale system and looking to keep costs low.
The main features available with this plan include:
- Accepting payments via credit cards, cash, and gift cards.
- Tracking inventory in-store and online.
- Creating discounts, loyalty programs, and coupons.
- Connecting with third-party apps like Salesforce Commerce Cloud or MailChimp for email marketing.
Shopify POS Pro
Shopify POS Pro is the advanced version of Shopify’s point-of-sale system and includes additional features such as:
- Secure customer data storage to create personalized shopping experiences
- Integrate salary systems for payroll automation like QuickBooks, Xero, or Gusto
- Ability to redeem rewards points from loyalty programs
- Accepting payments via Apple Pay, Google Pay, and other digital wallets
6 Key Differences Between Shopify POS Pro vs. Shopify POS Lite
Shopify offers two versions of its Point of Sale (POS) system: Shopify POS Pro and Shopify POS Lite. While both options allow you to sell products in person, sell online, process payments, and manage your inventory, there are some critical differences between the two that you should be aware of before making a decision.
Below, we’ll examine six critical differences between Shopify POS Pro and Shopify POS Lite to help you determine the right choice for your business.
Automatic Discounts
One of the key features of Shopify POS Pro that is not available in the Lite version is automatic discounts. This feature allows you to set automatic discounts for specific products, collections, or customers. For example, you could offer a discount on a popular product or a percentage off for repeat customers. Automatic discounts can be a great way to encourage sales and increase customer loyalty.
Buy in-store, Ship to Customer
Another feature exclusive to Shopify POS Pro is buying in-store and shipping to the customer. This is an excellent option for businesses with a physical location but also want to reach customers who cannot enter the store. With this feature, you can process a sale in-store and then ship the product directly to the customer, eliminating the need for them to come to the store to pick up their purchase.
Buy Online, Pick Up In-Store
Shopify POS Pro also offers the ability to buy online and pick up in-store. This feature is handy for customers who want to purchase but prefer to pick it up in person rather than have it shipped. With this option, customers can buy on your website and then come into your store to pick up their order.
Product Recommendations
Shopify POS Pro also includes product recommendations, helping increase sales and upsell to your customers. Based on your customer’s purchase history and the products they are currently viewing, the system will suggest additional products they might be interested in. This can help increase the average order value and drive more sales.
Retail Staff Roles & Permissions
Shopify POS Pro also includes retail staff roles and permissions, allowing you to control who can access certain areas of your Shopify account. For example, you can provide certain employees the ability to process sales, manage inventory, or access customer information. This can be a great way to ensure that only authorized individuals can access sensitive data and keep your business secure.
Demand Forecasting
Finally, Shopify POS Pro includes demand forecasting, which can help you plan for future sales and inventory needs. The system uses your sales history and trends to predict future sales, allowing you to make informed decisions about your inventory and staffing needs. This can be a great way to avoid overstocking or running out of popular items.
Setting Up Your Store with Shopify POS
Whether you are using hardware or an app, you will need to meet all the requirements below to successfully set up your store with Shopify POS.
Shopify POS Hardware
To use Shopify POS, you’ll need the following hardware:
- Smartphone or tablet: Shopify POS is a mobile app you can download on iOS or Android.
- Card reader: You’ll need a card reader to accept card payments. Shopify offers several options, including the Shopify Chip and Swipe Reader.
- Cash drawer: A cash drawer is an optional item that you can use to store cash and other payment methods, such as checks or coins.
- Receipt printer: If you want to print receipts for your customers, you’ll need a receipt printer. Shopify offers several options in this area.
- Barcode scanner: If you have barcoded products, a barcode scanner can make scanning products and adding them to a sale easier and faster.
These are the minimum requirements to use Shopify POS. However, you may add hardware, such as a larger screen or a stand, to make your setup more comfortable and efficient.
Although most point-of-sale software comes at an extra cost, Shopify has you covered. With a no-cost card reader included with every purchase, you can start taking payments immediately using your mobile phone or tablet with the Shopify POS app. Moreover, all purchases come with free shipping returns, 24/7 customer support, and a one-year warranty.
9 Steps to Setting Up the Shopify POS App
To set up your online store with Shopify POS, follow these steps:
- Create a Shopify account: If you haven’t already, sign up for a Shopify account.
- Download the Shopify POS app: The app is free on App Store and Google Play.
- Configure settings: Add a shop localization, set up taxes, and add employees.
- Set up your products: Add your products to your online Shopify store and ensure they’re set up with the correct information, such as prices, weights, and images.
- Barcodes: Add barcodes for a barcode reader
- Connect a payment processor: Choose a payment processor with Shopify POS, such as Shopify Payments, Stripe, or PayPal.
- Add a card reader: You’ll need a card reader to accept card payments. Shopify offers several options, including the Shopify Chip and Swipe Reader.
- Customize your settings: Configure your settings to match the needs of your business, such as tax rates, shipping options, and customer information.
- Start selling: Launch the Shopify POS app, connect your card reader, and sell your products.
Pros & Cons of Using Shopify POS for Retailers
While Shopify POS has many features, it’s essential to consider both the pros and cons before deciding if it’s the right solution for your business. Here, we’ll examine some of the key advantages and disadvantages of Shopify POS to help you make an informed decision.
Pros:
- Easy to set up and use: Shopify POS is designed to be user-friendly and intuitive, making it easy for small business owners to set up and use immediately.
- Integrates with Shopify: Shopify POS is integrated with the Shopify platform, making it simple for businesses to manage their online and brick-and-mortar sales from one central location.
- Mobile compatibility: Shopify POS is available as a mobile app, allowing businesses to process sales on the go or at pop-up events.
- Secure payments: Shopify POS uses fast payment processing, so businesses can confidently process transactions without worrying about security risks.
- Affordable: Shopify POS is inexpensive for small businesses, making it accessible for even the most minor operations.
Cons:
- Limited customization options: Shopify POS may not offer the same level of customization as other point-of-sale systems, so businesses may be unable to fully tailor the system to their specific needs.
- Limited reporting: Shopify POS may offer fewer reporting options than other systems, making it difficult for businesses to track sales and make informed decisions.
- Technical issues: As with any technology, Shopify POS could experience technical problems impacting sales and operations.
- Learning curve: While Shopify POS is designed to be user-friendly, there may still be a learning curve for some users, especially those who have not used a point-of-sale system before.
How Does Shopify POS Compare to Other Point-of-Sale Systems on the Market?
While Shopify is one of the best POS systems on the market, and its ecommerce functions give it a unique twist, there are other good POS options on the market. If you are searching for a POS system that does not involve multichannel selling or integrated payment processing, Square and Lightspeed could be the ideal fit for your business.
Lightspeed works with an assortment of third-party services to expand its features. In contrast, Square has reliable brand recognition and is backed by a large user community that can supply solutions to any issues you may come across.
If you’re looking for alternatives to Shopify POS software, there are several other point-of-sale (POS) systems to consider, including:
Square POS
Square is a popular mobile POS system that offers a variety of features, including payment processing, inventory management, and customer relationship management. Square is a good choice for small businesses that want an easy-to-use and affordable POS solution.
TouchBistro POS
TouchBistro is a mobile POS system designed specifically for the food and beverage industry. TouchBistro is a good choice for restaurants and cafes that want a specialized and user-friendly POS solution.
Lightspeed Retail POS
Designed for small and medium-sized businesses, Lightspeed Retail is a good choice for stores that want a comprehensive POS solution with advanced features. It offers payment processing, inventory management, customer loyalty programs, and more.
Frequently Asked Questions
Below are some commonly asked questions that users have about Shopify POS.
How does Shopify POS work?
With the Shopify POS app, you can sell your products or services in person and online — take orders from customers, accept payments, and sync transactions across sales channels.
Can I use Shopify POS offline?
Yes, Shopify POS has offline capabilities, allowing you to continue processing sales even if you don’t have an internet connection. Some pieces of Shopify POS hardware require an internet connection to work with the Shopify POS, but other components work as normal offline.
How secure is Shopify POS?
Shopify POS uses the same level of security as the Shopify platform, with features such as encryption, fraud detection, and secure payment processing.
Is the Shopify card reader free?
Yes, Shopify offers a free card reader with every purchase. The card reader is compatible with both iOS and Android devices. But additional POS hardware, such as a cash drawer, receipt printer, and barcode scanner, must be purchased separately and is not included in the Shopify POS cost.
Shopify POS Review: Final Verdict
Shopify POS is an excellent choice for businesses that manage their in-store and online sales from one central location. The system is easy to set up, user-friendly, secure, and affordable – making it the perfect option for small businesses. With features such as automatic discounts, customer loyalty programs, product recommendations, and demand forecasting, Shopify POS is an excellent choice for companies that want to take their retail operations to the next level.
When deciding whether or not to use Shopify POS in your business, consider what features you need and how much you are willing to spend. If you want an all-in-one system with powerful parts and integrations, then Shopify POS is an excellent choice. However, other options may be better suited to your needs if you want a more specialized system or a lower price point.
Ultimately, the best POS system for your business will depend on your specific requirements and budget.
